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Investment profession making progress on ethical issues, survey finds

Ethical investmentsThe investment profession is making progress in responding to the importance of ethics, according to an industry survey commissioned by the CFA Society of the UK.

The survey – now in its seventh year – found that investment professionals find meeting duties to clients less challenging for the sector as a whole than in previous years.

While the proportion is down to 43% this year from 51% in 2017 and 52% in 2015 the figure remains “stubbornly high”, according to the survey.

The number of individuals who have found it personally challenging to meet duties to clients increased slightly this year to 28% – from 27% in 2017 and 24% last year.

Meanwhile, the number of investment professionals who find it challenging to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct continues to fall.

Said Will Goodhart, chief executive of CFA UK: “It is great to see that our members are continuing to become more conscious and responsive to their ethical and professional responsibilities. As a profession, we have a duty to serve clients ethically and the public need to be confident that we can do so.

“The investment sector is characterised by information asymmetries and conflicts of interest. Poor ethical decision-making can have significantly adverse outcomes for clients and for firms.

“We must continue to ensure that ethical and professional awareness are embedded into firms’ cultures, and that those working in the profession have this front of mind every day.”

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